The Builders Risk Insurance covers the interest of both the Builders and the Owners in vessels under construction. The cover expires when the vessel is taken over by the Owners/Buyers.
Liability for Shipyard
The insurance covers liability incurred by the Insured (the Yard) arising out of faults or neglects in connection with repair work to ships and vessels. To the owner of the ship as a result of damage to the ship or its outfit
During the execution of repairs, rebuilding or installation work or guarantee overhaul on the yard or elsewhere
During the ship's lay-up on the yard while offers are obtained or during survey or while being removed within the harbor in which the yard is situated.
Towards third parties in connection with the yard's work on the ship as mentioned above
The insurance covers liability for damages even where such damage is not found until after the ship is delivered to the ship owner, but shall only cover liability for faults discovered within 6 month after the said time. The third party liability cover also includes compensation arising out of loss of life or injuries.
Damage to Repair Work
The insurance covers damage to repair work carried out on vessels while at the Insured’s shipyard or in the port of repair as well as damage to parts or materials which have been manufactured or purchased specifically for repair work in progress and which are located at the shipyard or in the port of repair, and where the risk/ownership still rest with the shipyard.
The insurance shall provide cover as from the arrival of the vessel to the shipyard and shall expire on delivery of the vessel to the shipping company or earlier if the risk transfer to the shipowner at an earlier stage.
Codan can also provide cover for:
Additional costs in connection with rebuilding
The yard's liability for the buyer's interest claim for instalments paid, and
The yard's loss of interest and daily penalties in the event of late delivery, is available at additional premium